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Topic : oppurtunities in power sector
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Is it time Chinese EPC contractors will become extinct of the Indian Power Sector?

Created by : Satyanarayana Reddy, Asst Manager, L&T  | 11 20 2009 05:30:55 +0000
Industry : PowerFunctional Area : India(Markets)
Keywords : power chinese power equipment manfacturing
Activity:  1057 views;  last activity : 07 06 2010 20:18:09 +0000

Till the X plan, BHEL has almost led monopoly in the market for power plant equippment. However the scenario changed in the recent years with the entry of chinese into indian market and poor policy decision by the GOI in the past. With the surge in huge capacity planned both from private and public sector and insufficeint indigeneous manufacturing capability has made the  entry easy for chinese. Chinese equipment is around 20% cheaper  compared to the domestic manufacturers. In the XI plan, chinese contractors share in Indian power sector is 28%.

There have been concerns on the ooperation of the chinese buit power plants esp in WBPDCL Durgapur and sagradhigi plants. More recently, collapse of korba chimney added further concern. Another issues was the Visa rescrictions for chinese. large no of chinese skilled & unskilled workmen will be restricted with the new Visa policy.

Lately, GOI also started encouraging the domestic manufacturing facilities to avoid dependence on imports with bulk tendering of 11 NTPC supercritical units etc. L&T Power already bagged huge orders for EPC Main plant and BOP.

Are these the signs of chinese extinction in the coming years?

  
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Developers still favour chinese for Main plant EPC/ supply Vs Developers prefer for Indian options for Main plant EPC/ supply
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Another cause of concern is the huge delays in chinese deliverables of equipment and high gestation for the development of plants. Competition is growing. owners will be the ultimate beneficiaries of this WAR.

My argument -Developers prefer for Indian options for Main plant EPC/ supply in the coming years
By Satyanarayana Reddy, Asst Manager, L&T  | 11 29 2009 11:10:23 +0000
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Yes the trend had changed where people started  giving more importance on profit rather than quality, and rather were going for these cheap chinese equipments, and these are really complex ones and needs chinese officials assistance, and in India it is hard for them to come and work, and I really can't understand with so much complexity why Indian companies are going for chinese equipments.


By Vineet Prakash, Sales/BD Manager, Tata Power  | 11 26 2009 07:12:12 +0000
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S up to certain Extent this will be acceptaed only for Cost and delivery Equation........

But as far as Performance is considered, I dont look ahead for any big players accepting Chinese Low cost high Trouble players...  The reason being the Huge Initial Investment and Its only One Time Investment so they also prefer performance rather than cost.... Durability in case any chinese Equipements is poor and plant performance after couple of years goes down with Increasing O & M costs.. The Projects are on  major Long term projects having life of atleast or more than 10-15 years and for such Projects consistancy in performane makes a big sense...

Thats why I headly find any big scope for Chinese EPC players ruling the market.....


By Sampanna Shastry, Deputy Manager- Marketing & Sales, Arani Power Systems Ltd  | 11 27 2009 04:58:10 +0000
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